Updated: 16th May 2020
A winding up petition against your company can quickly result in liquidation and closure, so it’s important to know your rights in this situation, and whether you could have the petition ‘set aside’ by the court.
This means that it is cancelled, but you need to be sure of your grounds for requesting this, that they are genuine, and you present them in detail with plenty of supporting documentary evidence.
As you only have seven days to put together a case in your defence, you’ll also need to act quickly, so under what grounds could you request a winding up petition is set aside by the court?
If a creditor has issued a winding up petition even though the debt is in genuine substantial dispute, they are abusing court process. You can seek an injunction that prevents them publicly advertising the winding up petition in the Gazette.
An advert placed in the Gazette is likely to alert the bank to your situation and result in your accounts being frozen, so preventing this is key. A dispute may involve a difference in interpretation of a contract’s terms and conditions, for example, or a belief that the goods you ordered were defective.
If the petitioner owes money to your business over and above the amount you owe them, you should be able to set it off against your debt. This effectively wipes out the debt, with no further action being required by the creditor for this particular debt.
Winding up petitions must be factually accurate and served in the correct way in order to be legal. Sometimes errors can be made if the petitioner has failed to seek professional advice.
A winding up petition can be served at the company’s registered address, or hand-delivered to a director, officer, or employee. If not hand-delivered, it can also be attached to the door of the company’s registered office.
As a company director you can put your case at the petition hearing, but it’s advisable to obtain legal representation. Real Business Rescue has extensive experience in dealing with winding up petitions, and can provide the professional help you need.
If your business has received a winding up petition, you need to act quickly – please contact one of the team to arrange a free same-day consultation. We operate with 78 national offices and can quickly establish the next step to take.
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